Equity: U.S. Telecommunications

FCOM Top Performer Intra-day
Price $34.37
Today’s Change -0.06%
4:00pm 09/13/2019
XTL Bottom Performer Intra-day
Price $69.71
Today’s Change -1.19%
4:00pm 09/13/2019

ETF.com Insight

With 7 ETFs and over $9.23B in combined AUM, the Equity: U.S. Telecommunications segment provides exposure to the U.S. space with a focus on Telecommunications securities.

Year-to-date, the best-performing ETF in the segment is the Communication Services Select Sector SPDR Fund (XLC), with a total return of 24.32%. Meanwhile, the most popular ETF is the Communication Services Select Sector SPDR Fund (XLC) with $6.00BB in assets under management.

Investors should take a look at the Vanguard Communication Services ETF (VOX). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VOX tracks a market-cap-weighted index of US communication services companies. VOX has an expense ratio of 0.10% and tracks the MSCI US Investable Market Telecommunication Services 25/50 Index.

ETF.com Efficiency Insight

The average efficiency score in the Equity: U.S. Telecommunications segment is 94 out of 100, with the Fidelity MSCI Communication Services Index ETF(FCOM) obtaining the highest rating of 99 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.27% per year, with the Fidelity MSCI Communication Services Index ETF (FCOM) having the lowest expense ratio, charging investors 0.08% yearly.

Investors should look for funds with tight tracking, such as the Vanguard Communication Services ETF (VOX), with a 12-month median tracking difference of 0.04%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: U.S. Telecommunications segment is 81 out of 100, with the Communication Services Select Sector SPDR Fund(XLC) obtaining the highest rating of 100 out of 100.

The Communication Services Select Sector SPDR Fund (XLC) is the undisputed segment leader when it comes to liquidity. The fund trades 143.75M in daily average volume. Investors should also find ample liquidity in the iShares U.S. Telecommunications ETF (IYZ), with $14.07M in daily dollar volume.

Use limit orders to trade funds such as the Invesco S&P 500 Equal Weight Communication Services ETF(EWCO), due to their double-digit market spreads.

ETF.com/ Block Liquidity

XLC
5
4
3
2
1
IYZ
5
4
3
2
1
VOX
5
4
3
2
1
FCOM
5
4
3
2
1
XTL
5
4
3
2
1
EWCO
5
4
3
2
1
JHCS
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The Thomson Reuters US Telecom has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to IYZ. This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, XLC follows a Vanilla strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology